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Starting to invest on my own - few questions

I just finished my first year in college and was looking to do something productive with the money I earn this summer. My parents helped me start a Roth IRA last year so I will definitely be contributing to that. But I also about $3000 sitting in a very low interest savings account that I think could be better used.

I've looked into a few different paths to take and I think would like get started with investing in stocks. There are a lot of different options so it was a bit overwhelming, but someone in another thread mentioned using Schwab's no-commission ETFs to get started with a small amount of money. This seemed like a good way to get into the basics of trading.

Since I started that Roth IRA with my parents and they have all the information regarding that, am I going to run into any problems if I try to start investing with Charles Schwab? I don't know the extent of the other things they have invested under my name, but I would like to get started on my own as soon as possible.

Also, is there an updated list that compares discount brokerages in this forum? I found an old thread that had a table, but that was from 2010 and I'm not sure how quickly things change.

Your best route will be investing in index funds and ETFs in your Roth IRA at an ultra-low cost brokerage such as Vanguard, Fidelity, or Charles Schwab.

Who is your current Roth IRA with?

How much has already been invested into that Roth for this year?

How much money will you have to invest moving forward each year?

I'm not entirely sure who my current Roth IRA is with, but based on the short phone conversation I had with my mom, I am pretty sure it has some index funds and a short cap ETF as well. I can figure out for sure next week. I opened the IRA with $1300 and haven't contributed yet for the year. Since I'm still a student, my income for the next four years might be sporadic so I am hoping to contribute at least $3000 a year.

I was more leaning towards doing short term investments outside my contributions to my IRA with the extra cash I have around that weren't earnings and leaving the Roth the way it is, just contributing yearly. It was set up by my family's financial planner so I'm fairly confident that those investments are sound, but I will definitely figure out what exactly it is invested in.

I'm not entirely sure who my current Roth IRA is with, but based on the short phone conversation I had with my mom, I am pretty sure it has some index funds and a short cap ETF as well. I can figure out for sure next week. I opened the IRA with $1300 and haven't contributed yet for the year. Since I'm still a student, my income for the next four years might be sporadic so I am hoping to contribute at least $3000 a year.

I was more leaning towards doing short term investments outside my contributions to my IRA with the extra cash I have around that weren't earnings and leaving the Roth the way it is, just contributing yearly. It was set up by my family's financial planner so I'm fairly confident that those investments are sound, but I will definitely figure out what exactly it is invested in.

I would definitely do what you're planning on and finding out which brokerage your Roth IRA is with. That could make a huge difference in how much money you have at retirement.

I would definitely do what you're planning on and finding out which brokerage your Roth IRA is with. That could make a huge difference in how much money you have at retirement.

What kind of things should I be looking for in my current Roth IRA brokerage?

Also, is there any good reading on getting started with short term investing? I've been jumping around sites like investopedia and fool.com for the past few weeks trying to understand the basics, which I feel generally comfortable with.

What kind of things should I be looking for in my current Roth IRA brokerage?

Also, is there any good reading on getting started with short term investing? I've been jumping around sites like investopedia and fool.com for the past few weeks trying to understand the basics, which I feel generally comfortable with.

You're looking for their fees associated with the overall IRA as well as with each fund and transaction.

To keep it simple, if it were me, if the Roth IRA isn't with one of those three companies I listed above, I'd transfer it to one of them.

Concerning short-term investing, I don't do that as my approach to investing is long-term so I can't help you with that.

It sounds like you want to do some day trading. $3k could be worth $30k in a few months with day-trading. There is a lot to be made doing this but of course a lot to lose. The place for day-trading is Ameritrade or some place like that where trading fees are low. Funds are not for short term trading. Many investment houses will put a restriction on your account if you start day-trading (buying and selling frequently) with funds. Day-trading is for individual stocks. Do your research on day-trading and get some good guides.

E finita la cuccagna

Liberals want you to think like them, Conservatives just want you to think!

Investors supply capital to a means of production while accepting the risks of industry/market within a given time frame. The general consensus is: buy low, sell high. The "news" is generally a benefactor as it appeals to the emotional basis for laying money down.

Trading is nothing more than gambling on price action. A good traders doesn't care which way the market goes; they are only concerned with proper risk:reward entry points, targets, precision execution and exits. The "news" is largely irrelevant, and in many respects, does nothing but distract from the goals.

Neither approach is a form of savings. If you don't have the physical asset (cash) in your hands, it's not yours.

Neither approach is a form of savings. If you don't have the physical asset (cash) in your hands, it's not yours.

The money I have in savings is outside of my emergency fund, so all it is doing is just sitting there. I've kept it in that savings account for a couple of years, untouched, but it only generates .25% interest and I only put it there because a savings account was the only way I thought money could grow. The reason I've started looking to invest it is solely because I think there has got to be some thing out there that is going to generate a return more than .25%. The CDs I looked at were still pretty low, so I began to wonder whether investing in the market would yield a higher return than a 1% CD for a year.

The money I have in savings is outside of my emergency fund, so all it is doing is just sitting there. I've kept it in that savings account for a couple of years, untouched, but it only generates .25% interest and I only put it there because a savings account was the only way I thought money could grow. The reason I've started looking to invest it is solely because I think there has got to be some thing out there that is going to generate a return more than .25%. The CDs I looked at were still pretty low, so I began to wonder whether investing in the market would yield a higher return than a 1% CD for a year.

The money I have in savings is outside of my emergency fund, so all it is doing is just sitting there. I've kept it in that savings account for a couple of years, untouched, but it only generates .25% interest and I only put it there because a savings account was the only way I thought money could grow. The reason I've started looking to invest it is solely because I think there has got to be some thing out there that is going to generate a return more than .25%. The CDs I looked at were still pretty low, so I began to wonder whether investing in the market would yield a higher return than a 1% CD for a year.

I hear you. There's a reason why you (and anyone that has any discretionary income left at this point) is looking to take on more risk and that's because of government interference in the market(s). Holding interest rates (Fed) at essentially zero is an attempt to boost asset prices on one had and prevent toxic nothingness on bank's balance sheets to be marked to market.

Why am I telling you this? Because if you understand the game you'll always be more comfortable making moves. In other words, people in your position often enter and exit the market at precisely the wrong time. Good intentions, poor execution. This is almost never addressed in any beginning investment materials I've ever seen.

Like Brian asked, when you do want it back and how much do you risk losing?

This Thread is more than 981 days old. It is very likely that it does not need any further discussion and thus bumping it serves no purpose.If you still feel it is necessary to make a new reply you may do so.
I am aware that this Thread is rather old but I still want to make a reply.

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